In this putative class action, Plaintiff seeks to represent nationwide classes defined as:
a) All persons and entities that: (a) had Business Income, Extended Business Income and Extra Expense coverage under a property insurance policy issued by Selective; (b) suffered a suspension of business related to the Closure Orders, at the premises covered by Selective’s property insurance policy; (c) made a claim under their property insurance policy issued by Selective; and (d) were denied Business Income coverage by Selective for the suspension of business resulting from the Closure Orders (the “Business Income Breach Class”).
b) All persons and entities that: (a) had Civil Authority coverage under a property insurance policy issued by Selective; (b) suffered loss caused by action of a civil authority; (c) made a claim under their property insurance policy issued by Selective; and (d) were denied Civil Authority coverage by Selective for the loss caused by a Closure Order (the “Civil Authority Breach Class”).
c)All persons and entities with Business Income, Extended Business Income and Extra Expense coverage under a property insurance policy issued by Selective that suffered a suspension of business due to a Closure Order at the premises covered by the Business Income coverage (the “Business Income Declaratory Judgment Class”).
d) All persons and entities with Civil Authority coverage under a property insurance policy issued by Selective that suffered loss of Business Income and/or Extra Expense caused by a Closure Order (the “Civil Authority Declaratory Judgement Class”).
As alleged in the Complaint, to protect the business in the event that it suddenly had to suspend operations for reasons outside of Plaintiff’s control, Plaintiff purchased a policy of insurance from Selective. The policy contained coverage extensions for Business Income, Extended Business Income, and Extra Expense, providing for payment of the actual loss of business income and extra expenses incurred by Plaintiff during a period of restoration. The policy further contained a Civil Authority provision, for payment of business income and extra expenses due to an action of a civil authority prohibiting access to the property.
Plaintiff was forced to suspend business at its two locations due to orders issued by civil authorities in Pennsylvania mandating the suspension of business for on-site services to prevent potential exposure to COVID-19. Plaintiff was also required to take necessary steps to prevent further damage and to minimize the suspension of business and continued operations. Plaintiff’s insured premises did not experience any known presence of, suspected presence of, or exposure to the COVID-19 virus.
Following timely notice of its claim, Plaintiff was denied business income and extra expense coverage by Selective. Upon information and belief, Selective has, on a wide-scale and uniform basis, refused to pay its insureds for losses suffered due to any executive orders by civil authorities that have required the necessary suspension of business, and any efforts to prevent further property damage or to minimize the suspension of business and continued operations in response to COVID-19.
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